2
Not a step by step, but a point in the right direction
From the thread, notice the lines in xoops_version.php
$modversion['blocks'][4]['file'] = "news_top.php";
$modversion['blocks'][4]['show_func'] = "b_news_top_show";
$modversion['blocks'][4]['edit_func'] = "b_news_top_edit";
Go read the news_top.php file (and others like it,) to see how a block is coded.
It's not just a case of putting a few entries in the config file. You actually have to code a couple of functions in a file - a 'show' function (which displays the block on screen) and a an edit function (that allows you to edit the block details in the admin section)
You'll probably find yourself creating a smarty template file as well and making some entries in the language files.